The minimum wage is important because it raises wages and reduces poverty. Proponents assert that it is needed to protect workers from exploitative employment practices. Opponents of the minimum wage claim that it is an unnecessary government intrusion into the relationship between employer and employee.Know More
The precursor to the minimum wage was passed by King James I of England in 1604. The Act Fixing a Minimum Wage established a minimum wage for textile workers. Prior to passage of the Act, there was an established maximum wage but no formal minimum.
The federal minimum wage was established by the Fair Labor Standards Act of 1938. The wage was set artificially high to render low-wage factory jobs in the South obsolete. Subsequent amendments to the Act increased its scope to cover retail and other sectors of the economy and to mitigate unintended consequence to Puerto Rico, the U.S. Virgin Islands and other territories.
As of 2014, the federal minimum wage is $7.25 per hour, but there is pressure on Congress to increase it to more than $10 per hour. Advocates for increasing the minimum wage assert that an increase is necessary to improve the wages of a large number of working women and because, after adjusting for inflation, the minimum wage for tipped employees is at its lowest level since 1966.Learn more in Economics
As of 2014 the minimum wage in Oklahoma is $7.25 hourly for companies with 10 or more full-time employees or more than $100,000 in gross sales per year, according to the National Conference of State Legislatures. Minimum wage for all other employees in Oklahoma is $2 per hour.Full Answer >
As of December, 2014, the minimum wage for the state of Missouri was $7.50 per hour. In 2015, that rate will go up to $7.65 per hour.Full Answer >
The minimum wage in Colorado is $8.23 per hour, as of January 2015. For employees who are tipped, the state minimum wage is $5.21 per hour. These numbers both reflect a small bump up from 2014, when the minimum wage was $8 and for tipped employees $4.98.Full Answer >
Inflation, especially high inflation, increases profits as well as the cost of doing business and implies higher demand for products at higher prices and a tight employment market with rising wages. Investopedia reports that inflation, "Is not intrinsically good or bad."Full Answer >